In a narrow range of trading at the Interbank Foreign Exchange (Forex) market on Thursday, the rupee ended almost stable – lower by a paisa-at 55.63 against the US currency as dollar demand just exceeds supply.
The rupee commenced weak at 55.72 a dollar from previous close of 55.62 and immediately touched a low of 55.75 on some weakness in local equities amid month-end dollar demand from importers.
However, fag-end recovery in stocks amid continued capital inflows and some weakness in dollar overseas later helped the rupee to recover to a high of 55.58 before settling at 55.63, still showing a fall of a paisa.
The Indian benchmark sensex, which was down by over 123 points at initial stages, reversed its losses and closed up by nearly 51 points or 0.29 pct, cutting straight four-session of losing string.
Foreign Institutional Investors (FIIs) continued its buying spree and picked up shares worth $74.50 million on Wednesday as per Sebi data.
The dollar index was trading lower by 0.06 pct against a basket of six major global currencies a day ahead of the US Federal Reserve Chairman Ben Bernanke’s speech while New York crude oil was quoting above USD 95 a barrel in Europe on Thursday.
Pramit Brahmbhatt, CEO, Alpari Financial Services (India) said: “The INR traded on strengthening note within a lack lustre narrow range supported by the commitment from government over the three point action plan for strong policy reforms by second week of September.”
“The rupee, however, shed some of its strength towards the fag end after the sharp dip in EU consumer confidence numbers to a three year low pushed the Euro from its highs,” he said.